MOSERS' Funding Rate

I retired in 2010 and, at the time, recall hearing that MOSERS was 82% funded. However, the latest report is that MOSERS is 69'6% funded. That seems an alarming decrease during a time that both stocks and bonds have generally done quite well. What is the cause of the decline?

The MOSERS Board of Trustees and the Missouri General Assembly have established a long-term plan relative to the actuarial funding and status of the system.  The MOSERS’ Board has, and continues to, implement a multi-year policy that reduces the assumption used by the system relative to investment returns, to address future capital market expectations.  In 2010, the Missouri General Assembly passed pension reform that established a new benefit tier within MOSERS (MSEP 2011).  This new tier is annually reducing the costs of the plan and will, over time, work to allow MOSERS to be a very viable, low-cost plan for all stakeholders.

While short-term experience may result in seemingly negative outcomes, such as a reduced funded status of 69.6%, the long-term strategies, in place, are solid and the objective data supports that conclusion.